D.O.F:17/08/2019
D.O.O:24/06/2022
IN THE CONSUMER DISPUTES REDRESSAL FORUM, KASARAGOD
CC.No.127/2021
Dated this, the 24th day of June 2022
PRESENT:
SRI.KRISHNAN.K :PRESIDENT
SRI.RADHAKRISHNAN NAIR.M : MEMBER
SMT.BEENA.K.G : MEMBER
T.K Lailamani, aged 58 years,
W/o (Late) K.K Muralidharan
Echikalayil House, : Complainant
Dadapally – P.O, Kanakapally Kasaragod. 671633
(Adv: T.C. Narayanan)
And
1. K. Radhakrishnan,
Managing Director, Shukapuram Kuries Pvt Ltd,
Registered Office, Al Mastroi Shoping Complex,
Near Shukapuram Hospital,
Thrissur Road, Edappal – Pin 679576 : Opposite Party
(Adv: Shajahan.J)
2. Shukapuram Kuries Pvt ,
Branch Office, House No.818, Sectora,
Faridabad.
ORDER
SRI.KRISHNAN.K :PRESIDENT
The case of the complainant is that she is the wife of K.K Muralidharan, who retired as a Head Master under department of education in Kasaragod district. He died on 19/06/2019. On 28/12/2011Sri K.KMuralidharan subscribed a chitty No.M 3/359 with Opposite Party for a total sala of Rs.28,05,000/- with a monthly installment of Rs 15000/- the detail of the accounts and particulars of chitty of the complainant is as follows:-
Chitty No: M 3/559, date 28/12/2011 end date 28/04/2027 installment Rs.15000/-. The instalment Rs. 8000/- was paid on 28/12/2011. He paid installments at Rs. 7513/- up to 27/08/2014 total amount paid is Rs. 210851. Though the complainant served a lawyer notice Opposite Party sent a reply denying liability claiming that there is no provision to pay or to refund paid installments of defaulted installments. Opposite Party admitted that the husband of the complainant had paid subscription from 28/12/2011 totaling Rs. 2,10,851/- and there is no provision to refund the paid installments of the defaulted chitties. Complainant suffered loss in terms of money, due to deficiency in service and unfair trade practice by the Opposite Party and caused damage. Complainant claims refund of Rs. 1,27, 540/- towards paid subscription amount interest of Rs.11,485/- for 87 months and Rs. 2,02,149/- towards the accumulated dividend amount on paid subscription Rs. 1 lakh as compensation and cost of litigation.
2. The Opposite Party filed its written version saying that the complainant is not a consumer and not maintainable. The Opposite Party admits that Sri. K.K Muralidaran husband of complainant subscribed in chitty No. 3/559. The said Muralidharan joined in chitty only on 27/03/2013 and he paid Rs. 1,36,182/- in total by 18 installments. The instalment amount paid by him after deducting the dividend amount. His last payment date is 27/08/2014 and after that he failed to pay subsequent installments.
3. The allegation in the complaint with respect to the functioning of the Opposite Party chitty company are false and hence denied by this Opposite Party. The chitty subscriber Mr. Muralidharan had full knowledge and he has well aware of the Opposite Party chitty company and he also agreed all the terms clause and conditionins of the company before joining this chitty. The allegations stated in the complaint are false hence denied by the Opposite Party. The Opposite Party have disclosed everything to the subscriber related with the place and time of auction and dividends etc.
4. The Opposite Parties sent reply for the complainant notice on 23/04/2021. But in the reply notice Opposite Party No:1 did not admit that the subscriber Muralidharan had paid subscription from 28/12/2011 totaling Rs. 210851. Opposite Party No:1 submits that the said Muralidharan paid installments till 27/08/2014 from 27/03/2013 and the complainant is liable to get amount after deducting the foreman commission and other costs stated in the chitty agreement. Claim of the complainant is for illegal gain from the opposite party. By filing this complaint with false contents, the complainant is not entitled to get any relief from this Opposite party.
5. The complainant did not adduce oral evidence but produced documents marked as Ext A1 to A5. The Opposite Party examined as Dw1 and marked Ext B1 to B3 documents.
6. Point for consideration in the case is that
1. Whether complainant is entitled for any amount from Opposite Party ?
2. Whether there is any deficiency in service from Opposite Party, and if so for what reliefs?
7. Point No.1:- The case is filed for getting back the chitty installments paid by the husband of complainant to the Opposite Party, after termination of the chitty period and also for compensation. A notice was issued to the Opposite Party demanding amount due. The complainant claims he is entitled to get amount paid with interest as per the chitty installments paid and dividend thereof and the cost of the complaint.
8. The Opposite Party produced evidence as Dw1. The Dw1 deposed that the complainant paid the installments to the Opposite Party and it was accounted in the chitty. As per the evidence of Opposite Party, the complainant paid an amount of Rs. 1,36,182/- up to 27/08/2014 by 18 installments.
It is admitted by the Opposite Party that the complainant is entitled to amount paid less other benefits. But since installment discontinued he is not entitled to refund of paid amount. Here the Opposite Party have the right to re-auction the same. The Opposite Party can arrange any other person by informing the public that the chitty of the complainant can be transferred to any other person. It is the parallel remedy if the complainant facts to pay the balance installments.
9. The complainant paid 18 installments to the Opposite Party but never received any amount from the Opposite Party. His wife is claiming amount after his death. Private chitty companies will return the amount paid by the subscribers after the termination of the chitty period, if any default caused to the chitty. The non prized subscriber who is a saving member up to the last installments gets dividend which is comparatively higher than the interest that are accured by way of Recurring Deposit Schemes.
Every non-prized subscriber shall pay due in respect of every installment on the dates and times and at the places mentioned in the chitty agreement and shall, on such payment, be entitled to obtain a receipt from the foreman.
Section (28) removal of defaulting subscribers:
1) A non-prized subscriber who defaults in payment his subscription in accordance with the terms of the chit agreement shall be liable to have his name removed from the list of subscribers and a written notice of such removal shall be given by the foreman to the defaulting subscriber within fourteen days of the date of such removal, provided that if the defaulter pays the defaulted installment with interest at such rate as may be prescribed within seven days of the date of receipt of such notice, his name shall be re-entered in the list of such subscribers.
Section 42 : refund of non prized subscriptions except in the cases referred to in clauses (a) and (b) of section 40:-
- Every non-prized subscriber shall unless otherwise provided for in this Act or in the chit agreement be entitled to get back his subscriptions at the termination of the chit without any deduction for dividend if any, earned by him.
- Any defaulting subscriber aggrieved by the removal of his name from the list of subscriber may within seven days of the date of receipt of the notice of removal refer the matter to the Register of arbitration.
- The contributions of any defaulting subscriber who has not been substituted till the termination of the chit shall be paid to him within fifteen days from the date of termination of the chit subject to such deductions as may be provided for in the chit agreement.
The complainant had entered into chit on the faith of the Opposite Party. But he was not able to continue chit. But he paid 18 installments to the Opposite Party without any gain. No party shall enrich himself at the cost of other and non refund of amount collected amount to unjust enrichment. Hence there is clear deficiency in service and unfair trade practice by Opposite Party. And complainant is entitled for refund of the paid amount.
In the result complaint is allowed in part. The Opposite Party is directed to return Rs.1,36,182/- admitted by Opposite Party as paid by husband of complainant towards chitty amount and also a sum of Rs. 1,00,000/- towards accumulated dividend amount on paid subscription with 8% interest from date of complaint till payment to the complainant and Rs.5000/- (Rupees Five thousand only) as cost of the litigation with 30 days of the receipt of the order.
Sd/- Sd/- Sd/-
MEMBER MEMBER PRESIDENT
Exhibits
A1- Kerala gazette publication
A2- Lawyer notice
A3- Postal Acknowledgment card
A4- Reply notice
A5- series- Pass book copy
B1- A Letter Dt: 02/03/2022
B2- Pass book
Witness Examined
Dw1-Rahees.P.P
Sd/- Sd/- Sd/-
MEMBER MEMBER PRESIDENT
Forwarded by Order
Assistant Registrar
Ps/
